Mahindra Lifespaces Developers, the real estate and infrastructure development arm of the Mahindra Group, has introduced a new brand of industrial clusters located across India.

Under the new brand ‘ORIGINS by Mahindra World City’, the company’s first two projects will come up in North Chennai and Ahmedabad, with an estimated investment of Rs 600 crores.

The first phase of proposed North Chennai project will have 264 acre development and this is a joint venture between Mahindra World City Developers and Japan’s Sumitomo Corporation. Total size of this project will be 500 acres.

The second project is located near Ahmedabad, with a phase 1 development of 268 acres, and is being developed along with International Finance Corporation (IFC) as a strategic partner. The project’s total size will be up to 350 acre.

Together, these industrial clusters are expected to create direct employment for around 20000 persons and will target companies across the engineering, medical equipment, food processing and logistics sectors, amongst others, Mahindra Lifespaces said in a release.

ORIGINS by Mahindra World City will comprise of industrial clusters spanning 250 – 600 acres, and located in high growth corridors across India. These industrial clusters will enable faster go-to-market for both domestic and global companies by way of clear land titles; plug-and-play infrastructure; in-house expertise in operations and security; and a range of business support services such as warehousing, logistics, banks, food courts, etc.

Mahindra World City’s developments in Chennai and Jaipur together span nearly 4500 acres; house 150 global and domestic companies that have created direct employment for over 45,000 persons; have generated exports exceeding $ 1.75 billion annually, the company added.

With India expected to emerge among the top five manufacturing countries globally, sustainable and future-ready business ecosystems will act as a game-changer for inclusive growth, job creation and productivity enhancement. ORIGINS by Mahindra World City embodies the Mahindra Group’s vision to create world-class urban infrastructure in India.

The Tamil Nadu Real Estate Regulatory Authority (TNRERA), the real estate regulator for the state of Tamil Nadu and Andaman and Nicobar Islands was until now operating from the office of CMDA’s vice-chairman at Thalamuthu-Natarajan Maaligai. Today, it has got its permanent office at Egmore in Chennai. It would function from the Chennai Metropolitan Development Authority’s (CMDA) second tower on Gandhi Irwin Bridge Road. The authority was established after the state government notified the Tamil Nadu Real Estate (Regulation and Development) Rules, 2017, on June 22 this year. As per the TN RERA rules, an upcoming realty projects with a minimum of eight units must be registered with the TNRERA, while new housing plots also come under the purview of the realty regulator, which also makes it mandatory for the Real estate agents to register with the authority, who would also look into the grievances of homebuyers and builders, based on the complaints, wherein the developer and buyer would be called for an inquiry by the real estate regulatory authority. The TN RERA would be chaired by the Secretary of the Ministry of Housing and urban development.

In an urban setting like Chennai, parks serve multiple purposes. They Not only provide the essential green cover but also provide a much-needed source of recreation and fitness to the community at large. However, the inevitable urban expansion and an increase in emissions have reduced the potential for evaporative cooling, thus leading to Urban Heat Islands (UHIs). Parks can play a vital role in bettering air quality, mitigating UHIs, and improving water levels. Parks help in improving physical and mental health too. In cities, the benchmark is that open spaces comprise of about 15-20 per cent of the total area. London boasts of 40 per cent of its areas as parks, New York City is at 14 per cent, and Shanghai drops to only 2.6 per cent. The denser the city, the lesser are the areas for parks. What is the role of the government towards improving this situation? The answer is as a part of the smart city mandate, there are several projects in the pipeline to have more parks within the city. Chennai city has 522 parks, 122 traffic islands and 118 medians that are maintained with greenery. As and when the OSR is handed over to the Greater Chennai Corporation, it is developed into parks or playgrounds.

The Commercial buildings in Chennai are most known for violating safety protocols, the fire being one of the most important. While Chennai’s latest tragedy relating to fire did not result in a loss of life, goods in excess of Rs 400 crore were destroyed. What is the reason for the same? Is it due to the government’s poor enforcement of periodic audits, that many commercial buildings continue to flout norms despite inherent risks? In view of the mounting fire accidents being witnessed in high-rise buildings such as hospitals, malls, theatres, etc, why are they not addressing the issues concerning the commercial complexes since it is risky to the floating population? Don’t Commercial complexes carry a substantial inventory of flammable materials like wood (shelves, interiors), textiles, synthetic garments, carpets, false ceilings and other risk factors including but not limited to high power load in the form of lighting, fans, and ACs? The National Building Code 2016 clearly lays down the practices to be followed by such complexes for fire safety. Norms such as the number of extinguishers, sprinkler systems, fire alarm systems and fire hydrant systems, are mentioned as per the height, purpose and location of the building.The statutory licenses to be obtained are pertaining to local body government approvals of the plan. By issuing licenses, the certifying agencies are supposed to carry out annual inspections of the installations in order to validate their serviceability. While it is impossible to raze every violated construction, the government cannot be absolved of full responsibility; the relevant authorities must insist on fire safety provisions as a retrofit since mishaps occur as the norms are flouted and statutory requirements are not complied with.Unfortunately, the certifying authorities and owners of such buildings become lax in implementing periodical audits, with less attention being paid to older structures. Shouldn’t buildings, which do not comply with the required safety regulations must be sealed till the time necessary safety features are incorporated?

“Urapakkam” is a place located a few kilometers away from Tamabaram. The city which was relatively unknown a few decades back, has now made itself known, since many software companies and other industries that have been set up in the nearby areas. The city, which is now under the CMDA, is expanding its wings. It has now become a hotbed for residential destinations, particularly the software and more particularly the Accenture Technologies, that have set up their company at Perungalathur. Urapakkam is on the brink of emerging as a real estate destination, due to the proposed Mofussil Bus Terminus in the neighbourhood. The area which offers easy access to all parts of the city through the GST Road that connects it to commercial, IT, industrial and manufacturing hubs including key centres like Tambaram, OMR, Poonamalee, Maduravoyal, Guindy and Oragadam. Does this mean that owning an asset in one of the fastest growing suburbs of the city, yield higher result or investment? Is this the right time to invest in property in Urapakkam?

The Chennai Metropolitan Development Authority, in order to effectively handle the traffic situation in Chennai, has planned to appoint a consultant in order to ease traffic in the areas bordering Koyambedu and CMBT. CMDA, in a bid to achieve the same, has invited bids and tenders from consultancy firms to prepare local area traffic management strategies and implementation plan to enhance safety, sustainability and civc amenities for the areas bordering in and around Koyambedu and CMBT areas. The Consultant would be required to present contemporary operational concepts, analyses and applications of traffic system management strategies, which includes operating, regulating and service policies in order to achieve maximum efficiency and productivity for the system as a whole. CMDA has also stated that through the application of the Traffic system management strategies, such as operational charges and land use policies, the study area could be used to maintain mobility and safety for growing standard of living by limiting the system capacity growth. To achieve this, would CMDA propose the implementation strategies, including the institutional arrangements for maintaining the mobility and safety by adjusting minor changes? How would this entire system work? Would this in reality reduce and regulate the traffic in the neighbouring areas of Koyambedu? Would this reduce the congregation and congestion caused to the Chennai city on the whole? Or is it just another ideology in the pipeline than that of realistic outcomes?

One of the leading real estate research firms in India, had predicted that Chennai would be the real estate hotspot in India courtesy its high growth potential. However, after five years, Chennai instead of becoming a real estate hotspot has only become a real estate stale mate. Real Estate Consultants were bullish about the Chennai market in the year 2012, however, the 2015 floods, coupled with demonetisation and the recent political outburst brought Chennai to a stand still. Many investors are now turning on to states such as Maharashtra, Andhra Pradesh, Telangana, which according to a recent research report, the hotspot for real estate market. As urbanisation has picked up pace in the country, traditionally-preferred property investment locations in most main cities are getting saturated and increasingly expensive. In Chennai there is hardly any scope for improvement or appreciation in prices since the city on the whole is suffering from a plethora of reasons, the unstable political scenario being the primary reason. Investment in the industrial sector had dried up. There are no new IT parks that have come up in Chennai to house more companies and create new jobs. The dearth of jobs in city has led to lacklustre performance of Chennai Realty Sector. Does this mean that the city would trigger more housing demand, only if there are more jobs created? When would Chennai city wake up from its deep slumber?

A report of one of the leading real estate research firm has revealed that most of the corporate occupiers have pre – booked the upcoming office spaces, which might lead to more absorption in the Q4 of 2017. Bangalore, has received the maximum number of takers for the commercial realty projects, which are pending construction. The IT/ ITES and BFSI processing businesses has driven 60 percent growth in absorption in Chennai. Kolkata has recorded a surge in supply and vacancy due to low net absorption. Net absorption for the first three quarters of 2017 has been recorded at approximately 18 million square feet, depicting a marginal decline of 7 percent year-on-year across the eight major cities of India. The trend for office space absorption has been positive despite a seeming slowdown in the early part of the year 2017. In the circumstances of the Indian Commercial Realty Market, being reactive, it gets majorly impacted by the changes in international business environment. To counter balance this, the restrictive supply, and hedge against high rental spikes, the occupiers are pre – committing upcoming supplies. The present demand supply dynamics, also bodes well for most large developer-landlords as they are able to offload some of their stake to institutional investors at better valuations as the interest of such investors in revenue generating assets continues to grow.

Chennai commercial market has particularly witnessed activities in the last few quarters registering slow growth due to increase in interest from occupiers. There is availability of quality office stock as well as lower rental values. Chennai gives the added benefit to occupiers of a rife talent pool in the area. Absorption in Chennai has been led by sectors such as e-commerce, IT/ BPM and BFSI for processing units. As a result of this positive trend in office absorption, Chennai has seen a significant drop in vacancy bringing it down from 15 percent in 2015 to 9 percent in 2017.

Does this bode well for Chennai? Is Chennai Commercial Realty market heading towards revival?

The Madras High Court’s Judgment on 20.10.2016, regarding regularization of unapproved plots, sent shock waves to the entire state of TN, wherein all the plots purchased and buildings constructed before 2016, have to be compulsorily regularized, if they were purchased from sources other than DTCP or CMDA, the contravention of the same, could land them in losing all the basic amenities connected with properties including but not limited to Electricity Connection, Water and Sewerage Connection etc. So far, the response to the same has been lukewarm. The High Court on 03.10.2017, had observed that many buildings were constructed violating the set – back norms as stipulated in the Master Plan of CMDA. GCC had confiscated two buildings recently i.e. lock and seal and de-occupation of a house and demolition of another for alleged violation of norms regarding set – back. It was held that illegal constructions without set back should not be regularized, and the contravention of the same by the authorities would lead to serious repercussions. The Hon’ble court further directed the Authorities to carry on investigation in the Plot of Buildings so confiscated and ordered for demolition and submit a report. The Hon’ble Court further held that if during inspection, if it is found that any building was constructed in violation of sanctioned plan, suitable action would be taken against the violators irrespective of the fact if any complaint has been lodged or not. Until then, the confiscated building would not be demolished.

What is the after – effect of this Judgement of the Hon’ble High Court? Does this mean that all the buildings that needs to be regularised can only be done, if there are no violations of sanctioned plans? What about those buildings that have been constructed in violation of the sanction plan? Would this mean that the Corporation would demolish all the buildings which are constructed in violation of the sanctioned plan? What would be the plight of those innocent inhabitants?

According to the Real Estate (Regulation & Development) Act, 2016, all the existing or ongoing projects with a maximum number of 8 apartment units and having 500 square meters are to be registered compulsorily under the Act. The contravention of this provision, could attract penalty in the form of fine amounting to a maximum of 10% of the total project cost or imprisonment for a period extending upto three years.

CMDA or Chennai Metropolitan Registration Authority, had approved the construction of 385 to 400 buildings in 2015 to 2016, out of which around 320 buildings were not registered as per the TN Real Estate (Regulation and Development) Rules 2017, which stood notified on 22 June 2017. The TN RERA, in a bid to penalise and punish the erring regulators, had dispatched a show cause notice to the Developers, wherein around 50% of the builders have stated that the building is being constructed for their own use and 12 have stated they have not yet started their projects, out of the aforesaid 12 builders, 5 of them had applied for new planning permit.

The CMDA and DTCP had exempted around 450 from RERA’s ambit, since they had either submitted applications seeking completion certificate or had fulfilled the criteria of completion before 22 June 2017.

Therefore, isn’t is clear that any project which is completed after 22nd June and the sale of the same without the stamp of the RERA regulator, a violation of the Act?

What action, is the regulator going to initiate against those erring developers? Would it be as strict as its counterpart Maharashtra?